The US has signalled it could consider an alternative to the International Maritime Organization’s proposed climate fund while maintaining its opposition to any financing mechanism administered by the UN shipping agency, according to Ship & Bunker.
The shift emerged at ISWG-GHG 22 in London, where the US delegation repeated its “principled, firm, and, yes, redline opposition to any IMO-administered fund” but said it was prepared to examine other structures.
Among them is Brazil’s proposal for a temporary “facility” that would be institutionally and operationally separate from the IMO Net-Zero Fund approved as part of the framework in April 2025.
Under the Brazilian model, implementation could sit outside the IMO, with an international financial institution potentially administering the facility under IMO guidelines. The World Bank was cited as one possible model, while strategic oversight could remain with a separate governing structure.
The US said such a facility could be smaller, more flexible and faster to establish than a permanent IMO-administered fund.
Washington is also prepared to examine Canada’s proposed “roster of funds”, public-private partnership models put forward by Japan, voluntary government or industry support for selected projects and direct contributions to existing IMO programmes.
The US stopped short of endorsing any of the alternatives and said the proposals would be taken back to Washington for further consideration during the intersessional period. Its position remains that any replacement mechanism should not be created through amendments to MARPOL Annex VI, administered as an IMO fund or financed through revenues from what Washington calls a global carbon tax.
The US also questioned the need for a separate financial reward mechanism for cleaner marine fuels. It argued that a more gradual greenhouse gas fuel-intensity reduction pathway could instead allow ships to benefit from selling surplus compliance credits.
The International Chamber of Shipping and the International Bunker Industry Association have proposed financial rewards for ships using zero and near-zero greenhouse gas emission fuels, with payments under the current draft coming from the IMO Net-Zero Fund.
The framework approved at MEPC 83 in April 2025 combines a global marine fuel standard with a greenhouse gas emissions pricing mechanism. Formal adoption, originally due in October 2025, was postponed for a year.
Member states reopened discussions at MEPC 84 in April and May 2026. MEPC 85 is scheduled for 30 November to 3 December, with the extraordinary MEPC session due to resume on 4 December, subject to confirmation.
The IMO is the UN specialised agency responsible for shipping safety, security and pollution prevention.
The International Chamber of Shipping is an international trade association of national shipowners’ associations.
The International Bunker Industry Association represents organisations involved in the marine fuels sector.